Airbnb (Airbnb) Interest Coverage : 0 (At Loss) (As of Dec. 2023)

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What is Airbnb Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Airbnb's Operating Income for the three months ended in Dec. 2023 was $-496 Mil. Airbnb's Interest Expense for the three months ended in Dec. 2023 was $-71 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Airbnb's Interest Coverage or its related term are showing as below:

ABNB' s Interest Coverage Range Over the Past 10 Years
Min: 0.72 Med: 9.77 Max: 78.79
Current: 18.29

ABNB's Interest Coverage is ranked better than
68.44% of 602 companies
in the Travel & Leisure industry
Industry Median: 5.15 vs ABNB: 18.29

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Airbnb Interest Coverage Historical Data

The historical data trend for Airbnb's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Airbnb Interest Coverage Chart

Airbnb Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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1.24

78.79

18.29

Airbnb Quarterly Data
	Dec17	Dec18	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															47.00	-	261.50	249.33	-

Competitive Comparison of Airbnb's Interest Coverage

For the Travel Services subindustry, Airbnb's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Airbnb's Interest Coverage Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Airbnb's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Airbnb's Interest Coverage falls into.

Airbnb Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Airbnb's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Airbnb's Interest Expense was $-83 Mil. Its Operating Income was $1,518 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,243 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1518	/	-83
	=	18.29

Airbnb's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Airbnb's Interest Expense was $-71 Mil. Its Operating Income was $-496 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,243 Mil.

Airbnb did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's Financial Strength is.

Airbnb (NAS:ABNB) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Airbnb Interest Coverage Related Terms

Thank you for viewing the detailed overview of Airbnb's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Airbnb (Airbnb) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Airbnb Inc (NAS:ABNB) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

ABNB:Mexico 1ABNB:Italy 6Z1d:UK 6Z1:Germany 6Z1:Germany 6Z1:Germany 6Z1:Germany AIRB34:Brazil ABNB:Austria

Address

888 Brannan Street, San Francisco, CA, USA, 94103

Website

https://www.airbnb.com

Started in 2008, Airbnb is the world's largest online alternative accommodation travel agency, also offering booking services for boutique hotels and experiences. Airbnb's platform offered over 7 million active accommodation listings as of Sept. 30, 2023. Listings from the company's over 4 million hosts are spread over almost every country in the world. In the fourth quarter of 2022, 47% of revenue was from the North American region. Transaction fees for online bookings account for all its revenue.

Executives

Brian Chesky	director, 10 percent owner, officer: CEO and Chairman	C/O AIRBNB, INC., 888 BRANNAN STREET, SAN FRANCISCO CA 94103
Nathan Blecharczyk	director, 10 percent owner, officer: Chief Strategy Officer	C/O AIRBNB, INC., 888 BRANNAN STREET, SAN FRANCISCO CA 94103
Aristotle N Balogh	officer: Chief Technology Officer	C/O YAHOO! INC., 701 FIRST AVENUE, SUNNYVALE CA 94089
Jeffrey D Jordan	director	2865 SAND HILL ROAD #101, MENLO PARK CA 94025
Dave Stephenson	officer: Chief Financial Officer	C/O AIRBNB, INC., 888 BRANNAN STREET, SAN FRANCISCO CA 94103
Joseph Gebbia	director, 10 percent owner, officer: Chairman - Samara & Airbnb.org	C/O AIRBNB, INC., 888 BRANNAN STREET, SAN FRANCISCO CA 94103
David C Bernstein	officer: Chief Accounting Officer	601 TOWNSEND ST, SAN FRANCISCO CA 94103
Catherine C Powell	officer: Global Head of Hosting	PINEVILLE GENERAL OFFICE, 2030 DONAHUE FERRY RD PO BOX 5000, PINEVILLE LA 71361-5000
James Manyika	director	C/O AIRBNB, INC., 888 BRANNAN STREET, SAN FRANCISCO CA 94103
Alfred Lin	director, 10 percent owner	2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Belinda J. Johnson	director	394 PACIFIC AVENUE, FLOOR 2, SAN FRANCISCO CA 94111
Sequoia Capital Fund, L.p.	10 percent owner	2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Sequoia Capital Fund Feeder, L.p.	10 percent owner	2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Sequoia Capital Fund Management, L.p.	10 percent owner	2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Sequoia Capital Fund Parallel, Llc	10 percent owner	2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025